Glencore halves losses in first half

Glencore seems to have overcome the worst, in the words of CEO Ivan Glasenberg, when presenting the first-half figures. The Baar-based company has almost halved its losses in the first six months of the year, rising to 369 million dollars from 676 million a year earlier, while revenue fell by 6% to 69.4 billion. Particularly the positive performance of the trading division, which increased earnings by 1.2% to 1.2 billion. According Glasenberg annual profits will rise further to 2.4 – to $ 2.7 billion due to diversification, given that the weakness in oil trading was offset by the strengthening in metals.

The Glencore message to the market and shareholders is that the work of restructuring is now half way and progressing well. The group last year, overwhelmed by the collapse in commodity prices, had announced a radical package of $ 10 billion of interventions, including an increase in capital, asset sales, production cuts and the suspension of the dividend.

The reduction in the debt position is also carried out through the sale of business units to 3.9 billion. In the second half of the year further divestments are planned for 4-5 billion, the sale also of a gold mining in Kazakhstan. In the last hours it has announced that it has sold to Evolution Mining a share of an Australian copper mine, and all the gold production of the latter for $ 670 million. Glencore is also continuing to reduce expenses: -51% in the period, to $ 1.5 billion; Glasenberg also stressed that "We have no plans to make acquisitions, there is nothing on the horizon."